Marks & Spencer Reports Record Christmas Sales but Warns of Economic Challenges

The retailer pledges to limit price increases despite a £120 million cost surge from new tax and wage measures.

Marks & Spencer achieved record Christmas sales of £4.06 billion, with food sales growing 8.7% and clothing and home sales rising 1%.
The company faces a £120 million annual cost increase due to higher national insurance contributions and minimum wage hikes from recent Budget changes.
CEO Stuart Machin stated M&S will strive to minimize price increases, though mitigating the rising costs will require supply chain savings and efficiency improvements.
Shares in M&S fell by nearly 8% as the company warned of ongoing economic uncertainties and subdued consumer confidence post-Budget.
The retailer plans to reduce £500 million in costs by 2028 as part of its broader turnaround strategy while being cautious about future recruitment and investments.